Recent hike in the tax by the US is seen as counterproductive. Take an example of solar panels which are important in the production of solar energy. Chinese solar panels are the cheapest solar panels available all around the world. When the tax has been hiked on the Chinese product, solar industry suffered the most.
With the hike, they are no longer able to get the cheapest solar panels and domestic production of the Solar panels are nowhere near to meet the domestic requirement also cost of the labor in US is much more higher than those in Asian countries which resulted in price hike of solar panels and naturally people are the real losers as they had to shell out more amount now for setting up solar panels.
While it is good to ensure the well being of the local industry, government should also ensure the needless tax on import will prove to be counterproductive always. If other nations also begin to impose the same amount of tax on US products it will result in loss and again the industry will suffer.
Asian countries have other markets like Europe, Africa and Australia to explore where as US products will be struggling to hold on in the face of competition due to high cost.
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